FAC Explorer

Audit 281

FY End
2022-09-30
Total Expended
$76.80M
Findings
28
Programs
17
Organization: Guam Housing and Urban Renewal Authority (GU)
Year: 2022 Accepted: 2023-10-05
Auditor: Ernst & Young LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
178 2022-001 Material Weakness Yes L
179 2022-001 Material Weakness Yes L
180 2022-002 Significant Deficiency - N
181 2022-002 Significant Deficiency - N
182 2022-003 Significant Deficiency - I
183 2022-003 Significant Deficiency - I
184 2022-004 Material Weakness - L
185 2022-005 Material Weakness - N
186 2022-004 Material Weakness - L
187 2022-005 Material Weakness - N
188 2022-004 Material Weakness - L
189 2022-005 Material Weakness - N
190 2022-004 Material Weakness - L
191 2022-005 Material Weakness - N
576620 2022-001 Material Weakness Yes L
576621 2022-001 Material Weakness Yes L
576622 2022-002 Significant Deficiency - N
576623 2022-002 Significant Deficiency - N
576624 2022-003 Significant Deficiency - I
576625 2022-003 Significant Deficiency - I
576626 2022-004 Material Weakness - L
576627 2022-005 Material Weakness - N
576628 2022-004 Material Weakness - L
576629 2022-005 Material Weakness - N
576630 2022-004 Material Weakness - L
576631 2022-005 Material Weakness - N
576632 2022-004 Material Weakness - L
576633 2022-005 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $42.87M Yes 2
14.248 Community Development Block Grants_section 108 Loan Guarantees $11.39M - 0
14.850 Public and Indian Housing $5.67M Yes 1
14.239 Home Investment Partnerships Program $4.42M Yes 0
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $3.54M Yes 1
14.872 Public Housing Capital Fund $2.18M - 0
14.U03 Emergency Housing Voucher $1.48M Yes 2
14.157 Supportive Housing for the Elderly $867,010 - 0
14.267 Continuum of Care Program $759,419 - 0
14.U02 Public Housing Cares Act Funding $353,818 Yes 1
14.U04 Hcv Cares Act Funding $317,271 Yes 2
14.879 Mainstream Vouchers $218,269 Yes 2
14.U01 Central Office Cost Cares Act Funding $200,001 - 0
14.896 Family Self-Sufficiency Program $169,551 - 0
14.191 Multifamily Housing Service Coordinators $62,380 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $23,676 - 0
14.231 Emergency Solutions Grant Program $9,618 Yes 1

Contacts

Name Title Type
H8HNL7Y96VG8 Elizabeth Napoli Auditee
6714751378 Rizalito Paglingayen Auditor
No contacts on file

Notes to SEFA

Title: 1. Scope of Audit Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2022. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. De Minimis Rate Used: N Rate Explanation: GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. The Guam Housing and Urban Renewal Authority (GHURA), a component unit of the Government of Guam, was formed primarily to provide safe, decent, sanitary, and affordable housing for low- to moderate-income families and elderly families in the Territory of Guam. Only the operations of GHURA are included in the scope of the Single Audit. The U.S. Department of Housing and Urban Development is the oversight agency for GHURA’s Single Audit.
Title: 2. Basis of Presentation Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2022. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. De Minimis Rate Used: N Rate Explanation: GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of GHURA under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of GHURA, it is not intended to and does not present the financial position, changes in net position or cash flows of GHURA.
Title: 4. Loan Funds Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2022. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. De Minimis Rate Used: N Rate Explanation: GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. GHURA, on behalf of the Government of Guam, has been designated the responsibility of implementing and carrying out the objectives of the HOME Program. The program is designed to increase homeownership and affordable housing opportunities for low- and very low-income Americans. HOME loan applicants that have been determined to be eligible for financial assistance are required to comply with the terms and requirements. Balances and transactions relating to the HOME program are included in GHURA’s financial statements. Loans made during the year and the balances of loans from previous years for which the federal government imposes continuing compliance requirements are included in the federal expenditures presented in the Schedule. As of September 30, 2022, the HOME and CDBG Program expenditures include $168,805 and $3,228,674 in current year disbursements and the beginning balance of HOME and CDBG loans of $4,247,650 and $306,406, with continuing compliance requirements, respectively. The balance of HOME Investment Partnerships and CDBG grant loans outstanding and recorded by GHURA on September 30, 2022 is $4,272,650 and $243,349, respectively. In December 2020, GHURA entered into a $12M loan with the U.S. Department of Housing and Urban Development to provide a source of low-cost, long-term financing loan to The Learning Institute through the Section 108 Loan Guarantee Program to construct a public facility for use as a school. The facility will be leased to the iLearn Academy Charter School by The Learning Institute. As of September 30, 2022, the Section 108 expenditures include $11,338,000 in current year loan disbursements and reimbursable costs of $52,765 to GHURA from The Learning Institute. The balance of the Section 108 loan outstanding and recorded by GHURA as of September 30, 2022 is $11,338,000.

Finding Details

Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: Various Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2021, do not agree with underlying accounting records, as follows: 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report do not agree with underlying accounting records, as follows: 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years 2021 and 2020 do not agree with underlying accounting records, as follows: 4. Subawards are not reported in FSRS, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2021-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: The Integrated Disbursement and Information System (IDIS) accounts for transactions using the cash basis method of accounting (real-time) while GHURA’s trial balance reflects transactions using the accrual basis method of accounting. Due to the differing accounting methods, variances are expected between reports extracted from IDIS and GHURA’s accounting system. The responsible party will prepare a reconciliation between GHURA’s trial balance and the IDIS reports to ensure the completeness and accuracy of the reported amounts. GHURA agrees with the recommendation to monitor subawards for reporting in FSRS.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: Various Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2021, do not agree with underlying accounting records, as follows: 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report do not agree with underlying accounting records, as follows: 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years 2021 and 2020 do not agree with underlying accounting records, as follows: 4. Subawards are not reported in FSRS, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2021-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: The Integrated Disbursement and Information System (IDIS) accounts for transactions using the cash basis method of accounting (real-time) while GHURA’s trial balance reflects transactions using the accrual basis method of accounting. Due to the differing accounting methods, variances are expected between reports extracted from IDIS and GHURA’s accounting system. The responsible party will prepare a reconciliation between GHURA’s trial balance and the IDIS reports to ensure the completeness and accuracy of the reported amounts. GHURA agrees with the recommendation to monitor subawards for reporting in FSRS.
Finding 2022-002
Finding No.: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.231 Emergency Solutions Grant Program Federal Award No.: SW20-SW-66-0001 Area: Special Tests and Provisions – Obligation, Expenditure and Payment Requirements Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for obligation, expenditure, and payment requirements, the recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For all (or 100%) of the Program’s subrecipients, we noted payments that were either 3 or 7 days delayed after the allowable 30-day payment period. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Effect: GHURA is in noncompliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. No questioned cost is reported as the late payments are not considered improper payments. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Upon the receipt of a payment request from a subrecipient, responsible personnel should immediately commence the necessary reviews and processing of payments within time frames that are sufficient to enable the release of checks within 30 days. Views of Responsible Officials: GHURA agrees with the recommendation to review and process payment requests from subrecipients within the 30-day time frame.
Finding 2022-002
Finding No.: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.231 Emergency Solutions Grant Program Federal Award No.: SW20-SW-66-0001 Area: Special Tests and Provisions – Obligation, Expenditure and Payment Requirements Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for obligation, expenditure, and payment requirements, the recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For all (or 100%) of the Program’s subrecipients, we noted payments that were either 3 or 7 days delayed after the allowable 30-day payment period. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Effect: GHURA is in noncompliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. No questioned cost is reported as the late payments are not considered improper payments. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Upon the receipt of a payment request from a subrecipient, responsible personnel should immediately commence the necessary reviews and processing of payments within time frames that are sufficient to enable the release of checks within 30 days. Views of Responsible Officials: GHURA agrees with the recommendation to review and process payment requests from subrecipients within the 30-day time frame.
Finding 2022-003
Finding No.: 2022-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.850 Public and Indian Housing Federal Award No.: GQ001-00000321D Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, for any amounts not exceeding $25,000, GHURA may use small purchase procedures. Sealed bidding shall be used for all contracts that exceed the small purchase threshold and that are not competitive proposals or non-competitive proposals. Under sealed bids, GHURA publicly solicits bids and awards a firm fixed-price contract (lump sum or unit price) to the responsible bidder whose bid, conforming with all the material terms and conditions of the Invitation for Bid (IFB), is the lowest in price. Condition: For one (or 4%) of 25 procurement transactions, aggregating $399,002 of $1,919,475 in total program nonpayroll expenditures, small purchase procedures were used for purchase order number PO220265 in the amount of $30,199 for janitorial supplies. However, sealed bidding procedures were required. Cause: GHURA did not effectively enforce controls over compliance with applicable procurement and suspension and debarment requirements. Effect: GHURA is in noncompliance with applicable procurement and suspension and debarment requirements. No questioned cost is reported because the procurement file demonstrated competition and the selection of the lowest quotations. Recommendation: Responsible personnel should enforce controls over compliance with applicable procurement and suspension and debarment requirements. For procurements in excess of $25,000, responsible personnel should publicly solicit bids and award a contract to the responsible bidder whose bid conforms with the IFB and is the lowest price. Views of Responsible Officials: Responsible procurement personnel are updating the procurement policies which include emergency procurement and small purchases.
Finding 2022-003
Finding No.: 2022-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.850 Public and Indian Housing Federal Award No.: GQ001-00000321D Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, for any amounts not exceeding $25,000, GHURA may use small purchase procedures. Sealed bidding shall be used for all contracts that exceed the small purchase threshold and that are not competitive proposals or non-competitive proposals. Under sealed bids, GHURA publicly solicits bids and awards a firm fixed-price contract (lump sum or unit price) to the responsible bidder whose bid, conforming with all the material terms and conditions of the Invitation for Bid (IFB), is the lowest in price. Condition: For one (or 4%) of 25 procurement transactions, aggregating $399,002 of $1,919,475 in total program nonpayroll expenditures, small purchase procedures were used for purchase order number PO220265 in the amount of $30,199 for janitorial supplies. However, sealed bidding procedures were required. Cause: GHURA did not effectively enforce controls over compliance with applicable procurement and suspension and debarment requirements. Effect: GHURA is in noncompliance with applicable procurement and suspension and debarment requirements. No questioned cost is reported because the procurement file demonstrated competition and the selection of the lowest quotations. Recommendation: Responsible personnel should enforce controls over compliance with applicable procurement and suspension and debarment requirements. For procurements in excess of $25,000, responsible personnel should publicly solicit bids and award a contract to the responsible bidder whose bid conforms with the IFB and is the lowest price. Views of Responsible Officials: Responsible procurement personnel are updating the procurement policies which include emergency procurement and small purchases.
Finding 2022-004
Finding No.: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2022 do not agree with underlying accounting records, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with reporting requirements. Also, relative to equity line items, GHURA is unable to input the unaudited FY 2021 financial information in the FASS-PH, and such balances impact the FY 2022 reporting. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should continue to coordinate with HUD relative to the submission of FY 2021 financial information in the FASS-PH. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-005
Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-004
Finding No.: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2022 do not agree with underlying accounting records, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with reporting requirements. Also, relative to equity line items, GHURA is unable to input the unaudited FY 2021 financial information in the FASS-PH, and such balances impact the FY 2022 reporting. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should continue to coordinate with HUD relative to the submission of FY 2021 financial information in the FASS-PH. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-005
Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-004
Finding No.: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2022 do not agree with underlying accounting records, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with reporting requirements. Also, relative to equity line items, GHURA is unable to input the unaudited FY 2021 financial information in the FASS-PH, and such balances impact the FY 2022 reporting. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should continue to coordinate with HUD relative to the submission of FY 2021 financial information in the FASS-PH. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-005
Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-004
Finding No.: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2022 do not agree with underlying accounting records, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with reporting requirements. Also, relative to equity line items, GHURA is unable to input the unaudited FY 2021 financial information in the FASS-PH, and such balances impact the FY 2022 reporting. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should continue to coordinate with HUD relative to the submission of FY 2021 financial information in the FASS-PH. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-005
Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: Various Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2021, do not agree with underlying accounting records, as follows: 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report do not agree with underlying accounting records, as follows: 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years 2021 and 2020 do not agree with underlying accounting records, as follows: 4. Subawards are not reported in FSRS, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2021-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: The Integrated Disbursement and Information System (IDIS) accounts for transactions using the cash basis method of accounting (real-time) while GHURA’s trial balance reflects transactions using the accrual basis method of accounting. Due to the differing accounting methods, variances are expected between reports extracted from IDIS and GHURA’s accounting system. The responsible party will prepare a reconciliation between GHURA’s trial balance and the IDIS reports to ensure the completeness and accuracy of the reported amounts. GHURA agrees with the recommendation to monitor subawards for reporting in FSRS.
Finding 2022-001
Finding No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: Various Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2021, do not agree with underlying accounting records, as follows: 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report do not agree with underlying accounting records, as follows: 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years 2021 and 2020 do not agree with underlying accounting records, as follows: 4. Subawards are not reported in FSRS, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2021-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: The Integrated Disbursement and Information System (IDIS) accounts for transactions using the cash basis method of accounting (real-time) while GHURA’s trial balance reflects transactions using the accrual basis method of accounting. Due to the differing accounting methods, variances are expected between reports extracted from IDIS and GHURA’s accounting system. The responsible party will prepare a reconciliation between GHURA’s trial balance and the IDIS reports to ensure the completeness and accuracy of the reported amounts. GHURA agrees with the recommendation to monitor subawards for reporting in FSRS.
Finding 2022-002
Finding No.: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.231 Emergency Solutions Grant Program Federal Award No.: SW20-SW-66-0001 Area: Special Tests and Provisions – Obligation, Expenditure and Payment Requirements Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for obligation, expenditure, and payment requirements, the recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For all (or 100%) of the Program’s subrecipients, we noted payments that were either 3 or 7 days delayed after the allowable 30-day payment period. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Effect: GHURA is in noncompliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. No questioned cost is reported as the late payments are not considered improper payments. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Upon the receipt of a payment request from a subrecipient, responsible personnel should immediately commence the necessary reviews and processing of payments within time frames that are sufficient to enable the release of checks within 30 days. Views of Responsible Officials: GHURA agrees with the recommendation to review and process payment requests from subrecipients within the 30-day time frame.
Finding 2022-002
Finding No.: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.231 Emergency Solutions Grant Program Federal Award No.: SW20-SW-66-0001 Area: Special Tests and Provisions – Obligation, Expenditure and Payment Requirements Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for obligation, expenditure, and payment requirements, the recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For all (or 100%) of the Program’s subrecipients, we noted payments that were either 3 or 7 days delayed after the allowable 30-day payment period. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Effect: GHURA is in noncompliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. No questioned cost is reported as the late payments are not considered improper payments. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Upon the receipt of a payment request from a subrecipient, responsible personnel should immediately commence the necessary reviews and processing of payments within time frames that are sufficient to enable the release of checks within 30 days. Views of Responsible Officials: GHURA agrees with the recommendation to review and process payment requests from subrecipients within the 30-day time frame.
Finding 2022-003
Finding No.: 2022-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.850 Public and Indian Housing Federal Award No.: GQ001-00000321D Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, for any amounts not exceeding $25,000, GHURA may use small purchase procedures. Sealed bidding shall be used for all contracts that exceed the small purchase threshold and that are not competitive proposals or non-competitive proposals. Under sealed bids, GHURA publicly solicits bids and awards a firm fixed-price contract (lump sum or unit price) to the responsible bidder whose bid, conforming with all the material terms and conditions of the Invitation for Bid (IFB), is the lowest in price. Condition: For one (or 4%) of 25 procurement transactions, aggregating $399,002 of $1,919,475 in total program nonpayroll expenditures, small purchase procedures were used for purchase order number PO220265 in the amount of $30,199 for janitorial supplies. However, sealed bidding procedures were required. Cause: GHURA did not effectively enforce controls over compliance with applicable procurement and suspension and debarment requirements. Effect: GHURA is in noncompliance with applicable procurement and suspension and debarment requirements. No questioned cost is reported because the procurement file demonstrated competition and the selection of the lowest quotations. Recommendation: Responsible personnel should enforce controls over compliance with applicable procurement and suspension and debarment requirements. For procurements in excess of $25,000, responsible personnel should publicly solicit bids and award a contract to the responsible bidder whose bid conforms with the IFB and is the lowest price. Views of Responsible Officials: Responsible procurement personnel are updating the procurement policies which include emergency procurement and small purchases.
Finding 2022-003
Finding No.: 2022-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.850 Public and Indian Housing Federal Award No.: GQ001-00000321D Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, for any amounts not exceeding $25,000, GHURA may use small purchase procedures. Sealed bidding shall be used for all contracts that exceed the small purchase threshold and that are not competitive proposals or non-competitive proposals. Under sealed bids, GHURA publicly solicits bids and awards a firm fixed-price contract (lump sum or unit price) to the responsible bidder whose bid, conforming with all the material terms and conditions of the Invitation for Bid (IFB), is the lowest in price. Condition: For one (or 4%) of 25 procurement transactions, aggregating $399,002 of $1,919,475 in total program nonpayroll expenditures, small purchase procedures were used for purchase order number PO220265 in the amount of $30,199 for janitorial supplies. However, sealed bidding procedures were required. Cause: GHURA did not effectively enforce controls over compliance with applicable procurement and suspension and debarment requirements. Effect: GHURA is in noncompliance with applicable procurement and suspension and debarment requirements. No questioned cost is reported because the procurement file demonstrated competition and the selection of the lowest quotations. Recommendation: Responsible personnel should enforce controls over compliance with applicable procurement and suspension and debarment requirements. For procurements in excess of $25,000, responsible personnel should publicly solicit bids and award a contract to the responsible bidder whose bid conforms with the IFB and is the lowest price. Views of Responsible Officials: Responsible procurement personnel are updating the procurement policies which include emergency procurement and small purchases.
Finding 2022-004
Finding No.: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2022 do not agree with underlying accounting records, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with reporting requirements. Also, relative to equity line items, GHURA is unable to input the unaudited FY 2021 financial information in the FASS-PH, and such balances impact the FY 2022 reporting. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should continue to coordinate with HUD relative to the submission of FY 2021 financial information in the FASS-PH. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-005
Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-004
Finding No.: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2022 do not agree with underlying accounting records, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with reporting requirements. Also, relative to equity line items, GHURA is unable to input the unaudited FY 2021 financial information in the FASS-PH, and such balances impact the FY 2022 reporting. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should continue to coordinate with HUD relative to the submission of FY 2021 financial information in the FASS-PH. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-005
Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-004
Finding No.: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2022 do not agree with underlying accounting records, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with reporting requirements. Also, relative to equity line items, GHURA is unable to input the unaudited FY 2021 financial information in the FASS-PH, and such balances impact the FY 2022 reporting. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should continue to coordinate with HUD relative to the submission of FY 2021 financial information in the FASS-PH. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-005
Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-004
Finding No.: 2022-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2022 do not agree with underlying accounting records, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with reporting requirements. Also, relative to equity line items, GHURA is unable to input the unaudited FY 2021 financial information in the FASS-PH, and such balances impact the FY 2022 reporting. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should continue to coordinate with HUD relative to the submission of FY 2021 financial information in the FASS-PH. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.
Finding 2022-005
Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.